KeyBanc Starts Sanderson Farms (SAFM) at Sector Weight

KeyBanc initiated coverage on Sanderson Farms (NASDAQ: SAFM) with a Sector Weight rating.

Analyst Brett Andress said, "Although we view SAFM as a well managed, growth-oriented processor (increasing its capacity 70%+ over the last decade), we view valuation at current levels as fair, with the stock currently trading at 13.4x our normalized earnings estimate vs. a range of 12-13x that we believe is more representative of a typical mid-cycle multiple. Further, we would highlight that SAFM has outsized exposure to Georgia Dock pricing (~25% vs. 3-5% for peers), likely creating a sentiment overhang given headlines surrounding this scrutinized pricing mechanism."

For an analyst ratings summary and ratings history on Sanderson Farms click here. For more ratings news on Sanderson Farms click here.

Shares of Sanderson Farms closed at $80.65 yesterday.

You May Also Be Interested In

• CFRA Starts SpaceX (SPCX) at Sell, 'Our primary concern is that SpaceX’s long-term strategy remains heavily dependent on Starship'
• Citi upgrades AMD to buy with $575 price target ahead of Q4 earnings
• UBS Reiterates Neutral Rating on Lennar (LEN) Following Q2 Results